AECI, Clariter collaborate to produce sustainable petrochemicals

South Africa-based AECI and Clariter, an international cleantech company, have joined forces to produce oils, solvents and waxes from the upcycling of waste plastics using technology developed by Clariter
.

Specifically, AECI has invested EUR 2.
5 million in a strategic partnership with Clariter in the form of a convertible loan
.
The deal includes participation in further financing of up to €10 million, as well as distribution and off-take agreements for Clariter's range of oils, solvents and waxes
.

While the funding will be used to scale up Clariter's technology to a commercial level, the two companies will also explore the development and construction of Clariter's full-scale plants within AECI's existing geographic footprint, specifically South Africa, Germany and the United States
.

In addition, the two companies will collaborate on research and development of blends for novel specialty chemical applications and advanced high-value industrial products
.
This includes blending products to create green premium new products, as well as offtake agreements for AECI and distribution for Clariter's oils, solvents and waxes
.

"As our upgraded technology utilizes plastic waste as a feedstock for green petrochemicals, we address a critical global issue," said Ran Sharon, Clariter's president and CEO, in a statement announcing the agreement.
"Greener and more circular Processes and products play an important role in global sustainability trends and the eventual realization of a net-zero carbon future
.
"

Clariter has developed a continuous, proprietary, proven chemical upcycling process that blends the major types of plastic waste - polyethylene, polypropylene and some polystyrene
.
The process includes a thermal cracking step that converts plastic waste into a variety of liquid hydrocarbons, followed by hydrofinishing to remove impurities and form naphthenes and paraffins
.
The third step involves distillation and separation, where the distillate is distilled into a pure product that is a ready-made substitute for existing product manufacturers
.
Current results show that Clariter's green products meet FDA purity standards and exceed petrochemical benchmarks
.

In a statement announcing the agreement, AECI CEO Mark Dytor said AECI is well positioned for this partnership given AECI's extensive chemical applications expertise, industrial experience, market access and product development capabilities in key regions
.
He added that the partnership is very much in line with the group's internationalisation strategy and growth ambitions in hard currency revenue, and makes "AECI a pioneer in the waste plastics-to-products industry"
.

Founded in 2003, Clareter is a privately held company headquartered in Luxembourg with operations in Israel, the Netherlands, Poland and South Africa
.
Its technology has been validated at the Clariter R&D pilot plant in Gliwicz, Poland since 2006 and at the Industrial Scale Plant (ISP) in East London, South Africa since 2018
.
Part of Clariter's strategy is to welcome partners like AECI, especially development collaborations, which can range from off-take agreements to co-build factories
.

The company aims to launch the first full-scale factories in Israel, the Netherlands and Poland
.